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Jump to our picks for the best peer-to-peer payment apps:
Peer-to-peer payment services are apps or app features that allow you to transfer money to other people — often by searching for their phone number, email address or username — quickly and usually for free. Here are some of the most common P2P money transfer apps available, along with the benefits and drawbacks of each.
» Own a small business? Learn how to accept peer-to-peer payments
Zelle
What it is: Zelle is a money transfer service that is offered by most major banks in the U.S. and allows people to send money to other Zelle users through their bank account.
How it works: After setting up a Zelle account through their bank, users can send or request money by entering another Zelle user’s registered email address or phone number. If the recipient doesn’t have a Zelle account, they will have to set one up in order to send or receive money.
+ Zelle benefits
- Money transfers happen quickly. Money transfers to other enrolled Zelle users tend to happen within a matter of minutes. If the recipient isn’t enrolled in Zelle, they’ll have to enroll before they can receive money.
- Zelle is compatible with many banks and credit unions. Quick, direct money transfers between different banks and credit unions is one of the biggest benefits of Zelle. Unlike some other money transfer services, Zelle transfers money directly into your bank account, so you don’t have to wait to move it out of a third-party app.
+ Zelle drawbacks
- You can’t connect a credit card to pay others. There are other peer-to-peer payment apps that allow users to connect credit cards for payment, which can be helpful if there aren’t enough funds in your bank account or app account.
- This service typically requires a smartphone. If Zelle is available through your bank, you can usually use your bank’s desktop login to send money. Otherwise, you’ll need a mobile device like a smartphone or tablet to send and receive money through your bank’s app.
- You can’t send money to international bank accounts. Zelle only works with domestic banks.
» To learn more, read our overview of Zelle
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5.00%
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4.00% for 6mo
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Venmo
What it is: Venmo is an app that allows users to send money to each other via linked bank account, Venmo balance or credit card. The service is owned by PayPal, but it has some different functionality compared to PayPal’s peer-to-peer money transfer service. One of Venmo’s most interesting draws is that the app also offers a free, optional debit card that allows users to spend money from their Venmo account balance.
How it works: Users download the Venmo app and create an account. They can then link a bank account or credit card to fund their Venmo account; then they can send, request or receive money from other Venmo users.
+ Venmo benefits
- A lot of people use Venmo, so it can be a convenient way to go cashless. Millions of people use the service, which makes it a very popular way to send, request and receive money.
- Free, optional debit card. Users who opt in to the Venmo card can use the debit card with retailers, and the card will draw upon the user’s Venmo balance for funding. The debit card also gives users cash back for shopping at certain retailers, which is added to a user’s Venmo balance. (For more details, see our Venmo Stash review.)
+ Venmo drawbacks:
- There’s a fee to send money via credit card. Venmo charges 3% of the transfer total to send money via credit card.
- Venmo charges a fee for instant cash-out transfers to your bank account. There’s a 1.75% fee — with a minimum of 25 cents and a maximum of $25 — if you want to transfer your Venmo funds instantly to your bank account. Otherwise you’ll have to wait one to three business days to receive your funds for free.
» Check out our overview of Venmo for more information
Cash App
What it is: Cash App is a money transfer app created by Block Inc. that allows people to send money via their Cash App balance or linked bank account, credit card or debit card. The service offers an optional debit card — called a Cash App Card — that allows users to spend the money in their Cash App balance as well as receive “offers,” which are savings that are applied to various vendors.
How it works: Once Cash App is downloaded to a smartphone or tablet, users create an account and link a debit card. Once their Cash App account is set up, they can send, request and receive money from other Cash App users, make purchases, invest in stocks and buy and sell bitcoin.
+ Cash App benefits
- Free, optional debit card. Cash App gives users the option to receive a “Cash App Card” debit card that allows them to spend their Cash App balances at different retailers. (See our Cash App Card review.)
- “Offers” can help users save money. Users who have the Cash App Card can use Cash App to activate “offers,” which are discounts with certain retailers that are automatically applied to a purchase. Only one offer can be active at a time, but users can easily switch which one is active in the app.
- Users can build their savings. Cash App offers the option to have savings within an account. By meeting a monthly spending requirement, users can earn 3.25% APY on their savings balances. (Read more about Cash App’s savings feature.)
- Users can use the app to invest in stocks and buy and sell bitcoin. A unique feature of Cash App is that it allows users to invest their money in individual stocks as well as buy and sell bitcoin, potentially allowing them to earn money through the app.
+ Cash App drawbacks
- There’s a fee to send money via credit card. Cash App charges a 3% fee to people who use a credit card to send money.
- A fee for instant deposits. Cash App offers free standard cash outs — which take one to three business days to deposit to your linked debit card — but if you want an instant cash out deposit, Cash App will charge a 0.5%-1.75% fee with a minimum of 25 cents.
» Take a look at our Cash App review to learn more
Cash App disclosures
"Teens aged 13 to 17 can join with approval from eligible parent or guardian. To view the eligibility requirements for sponsoring a teen, please visit the Sponsored Accounts section of the Cash App."
"Cash App will pass through a portion of the interest paid on your savings balance held in an account for the benefit of Cash App customers at Wells Fargo Bank, N.A., Member FDIC. To earn the highest interest rate on your Cash App savings balance, you need to (a) have a Cash App Card or sponsor one or more sponsored accounts and receive at least $300 in paycheck direct deposits each month; or (b) have a sponsored account with sponsor approval to earn interest. Exceptions may apply. Savings yield rate is subject to change."
"Brokerage services provided by Cash App Investing LLC, member FINRA / SIPC, subsidiary of Block, Inc. See our BrokerCheck. Bitcoin services are not licensable activity in all U.S. states and territories. Block, Inc. operates in New York as Block of Delaware and is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Investing and bitcoin are non-deposit, non-bank products that are not FDIC insured and involve risk, including monetary loss. Cash App Investing does not trade bitcoin and Block, Inc. is not a member of FINRA or SIPC. For additional information, see the Bitcoin and Cash App Investing disclosures. Additional fees for securities may apply such as regulatory fees and fees to transfer securities externally. Please see our House Rules for more information. Fractional shares investing may involve additional risks such as non-transferability. For additional information regarding the unique risks and limitations of fractional shares, please see the Investing Customer Account Agreement."
PayPal
What it is: PayPal is a payment service that runs the gamut of helping people with personal money transfers, online purchases and e-commerce. Using PayPal as a peer-to-peer money transfer service, individuals can send money to each other via a linked bank account or a debit or credit card.
How it works: PayPal offers many different functions, perhaps the most popular being payment services for online merchants and buyers. But PayPal also offers P2P money transfers for registered users as well as a debit card (see our PayPal debit card review). Once you’ve created a PayPal account, you can send and request money by searching for another user’s name, username, email or phone number and then filling out the amount you want to send or request.
+ PayPal benefits
- The service is widely used and has many payment functions. In addition to peer-to-peer transfers, PayPal allows users to buy and sell online and is integrated with many online retailer checkout pages.
- PayPal has high transfer limits. You can send up to $60,000 — but may be limited to $10,000 — in a single transaction. This amount may vary depending on your currency and whether your account is verified.
- There are multiple methods of payment for transfers. Users can send money with a debit card, a credit card, a bank account, PayPal balance and PayPal Credit. PayPal Credit is an individual credit line that’s offered by PayPal, and it can be used to send money to friends and family.
+ PayPal drawbacks
- There’s a fee to use a credit card, debit card or PayPal Credit to send money. Sending money via linked bank account or PayPal balance are the only free ways. The other options all charge a 2.9% transaction fee, and PayPal Credit has interest rates that are on par with credit cards.
- Transfers can take some time to move to and from your bank account to your PayPal account. Free transfers from PayPal to your bank account usually take one business day but can take up to three business days depending on your bank’s clearing process. If you want to cash out to your bank account immediately, PayPal charges a fee of 1.75% of the amount transferred, with a maximum fee of $25.
» To learn more about all of its services, read our guide to PayPal
Apple Cash
What it is: Apple Cash allows Apple users to send and receive money in the Messages or Wallet apps, which are compatible with more recent versions of iOS devices including iPhone, iPad and Apple Watch.
How it works: Users enroll in Apple Cash with their compatible Apple device and, after linking a debit card in the Apple Wallet app, they are able to send, request and accept money from other users through Messages or Wallet.
+ Apple Cash benefits
- You can use Apple's system at checkout with a lot of retailers. Apple's system can make retail transactions fast and convenient. As long as you’re enrolled, have an Apple device with technology that supports contactless payments and are shopping with a retailer that allows contactless payments, then you can use the app to quickly make purchases.
- Convenient for Apple users. If your friends and family are part of the Apple ecosystem, Apple Cash can be handy for sending, requesting and receiving money.
+ Apple Cash drawbacks
- It doesn’t work with non-Apple devices. Apple Cash is limited to Apple devices. Apple Cash can’t be used on Android devices, which means it might be a limited way to send money to friends and family if they don’t have iOS products.
» Learn more in our Apple Cash review
What it is: Some social media and communication networks allow users to send peer-to-peer money transfers to each other. Meta Pay, for example, allows people to send, request and receive money via linked bank account.
How it works: Users can usually easily enroll in a social network’s P2P payment system by linking a bank account, debit card, credit card or PayPal account. When they want to send or request money, they can send a payment message over the platform to another enrolled user. If another user is sending you money, it should automatically appear in your linked account.
+ Social media transfer benefits
- Money transfers usually happen quickly. If both parties are already enrolled with a linked bank account, they should be able to send and receive money instantaneously. Transfer speed may vary depending on how long it takes to enroll in the money transfer service or if your bank takes a while to post money to your account.
- It’s a convenient way to pay or request money from friends and family. If your friends and family are already using the same social networking site as you, then it can be easy and convenient to send money.
+ Social media transfer drawbacks
- Usually limited to very basic transfer features. Social networks don’t typically offer the additional bells and whistles of debit card offers or smartphone cash register transactions. These social networks also might not allow users to send each other payments with credit cards.
- The danger of scams. Perhaps more so than other payment services, social networks can be attractive to scammers since they’re much more personal platforms. Be on the lookout for payment requests from other social network users that you don’t know in person or that seem out of character for people you do know. Cybercriminals can hack accounts or spin tales that are meant to tug at your heartstrings before they ask for money. Some common tactics include romantic scams, lottery scams, donation scams, inheritance scams and loan scams.
Other money-sending options
If you’re looking to send money internationally through non-bank methods or via cash pickup, the above methods might not work for you. Services such as Wise (formerly TransferWise), MoneyGram, Western Union and others tend to help people who are in different situations. See NerdWallet’s guide to some of the best ways to send money to learn more about which services might best suit your needs.
Social media money transfers